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Educational and Skills Mismatches: Unravelling Their Effects on Wages Across Europe

Author

Listed:
  • Loredana Cultrera
  • Benoit Mahy
  • François Rycx
  • Guillaume Vermeylen

Abstract

This paper is among the firsts to investigate the impact of overeducation and overskilling on workers’ wages using a unique pan-European database covering twenty-eight countries for the year 2014, namely the CEDEFOP’s European Skills and Jobs (ESJ) survey. Overall, the results suggest a wage penalty associated with overeducation. When interacting educational mismatch with skills mismatch into apparent overeducation and genuine overeducation, the results suggest that the highest wage penalty is reached for workers that are both overeducated and overskilled.

Suggested Citation

  • Loredana Cultrera & Benoit Mahy & François Rycx & Guillaume Vermeylen, 2022. "Educational and Skills Mismatches: Unravelling Their Effects on Wages Across Europe," Working Papers CEB 22-004, ULB -- Universite Libre de Bruxelles.
    • Handle: RePEc:sol:wpaper:2013/340172
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    Cited by:

    1. Giuliano, Romina & Mahy, Benoît & Rycx, François & Vermeylen, Guillaume, 2024. "Overeducation, Overskilling and Job Satisfaction in Europe: The Moderating Role of Employment Contracts," IZA Discussion Papers 16913, Institute of Labor Economics (IZA).
    2. Sayoree Gooptu & Vivekananda Mukherjee, 2023. "School dropout and overeducation in developing economies: Feasibility of a budgetary solution†," Review of Development Economics, Wiley Blackwell, vol. 27(2), pages 825-852, May.
    3. Romina Giuliano & Benoît Mahy & François Ryckx & Guillaume Vermeylen, 2024. "Overeducation, Overskilling and Job Satisfaction in Europe: The Moderating Role of Employment Contracts," LIDAM Discussion Papers IRES 2024003, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    4. Esso-Hanam Atake & Larbik Kolani & Moubarak Koriko, 2025. "Human Capital, Underemployment, and Economic Growth in Sub-Saharan Africa," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(2), pages 10329-10355, June.

    More about this item

    Keywords

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    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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